Panel suggested to oversee Downtown Peoria hotel project

PEORIA — Chuck Weaver said he still supports the Downtown Peoria hotel project. He appears less supportive of Gary Matthews’ stewardship of it.

“It would be good to have some city person that was closer to the project all the time that would represent our interests,” Weaver, an at-large City Councilman, said Tuesday night following his group’s meeting.

Weaver used that meeting to propose a three-person panel oversee the Marriott Pere Marquette and the soon-to-open Courtyard by Marriott. Matthews, the project developer, would be a panel member, as would the city nominee. The hotels have been constructed with about $36 million in city funds.

A representative of other project money lenders would fill the third spot. One of those three would be designated to interact with the hotels’ management firm, although it appears Weaver doesn’t want Matthews to act alone.

A Journal Star report last week stated Matthews and associated partners and firms are facing foreclosure proceedings and lawsuits regarding a number of their properties. That situation and delayed release of figures regarding the financial performance of the Downtown hotels concern Weaver.

“I’m supportive of trying to see Mr. Matthews be successful,” Weaver said. “But you also have to take some cautionary measures once things get into this type of situation.”

The council took no action regarding approval of a proposed change in the hotels’ management companies. Matthews has proposed a switch from Marriott International to First Hospitality Group, a Rosemont-based firm.

City Manager Patrick Urich requested a council deferral. He wants the other lenders to approve the change before the city does, as it is required.

The next council meeting is June 24. Urich suggested a special meeting might be called, if necessary, to consider the management switch.

“We do understand time is of the essence,” he said. “The Courtyard is in a state of near-completion, so it would be nice to move the process forward if we can.”

Weaver said he would have a difficult time supporting the management change if Matthews remained in charge. Until about 10 days ago, he said, he was unaware of Matthews’ potential financial and legal problems.

But Weaver also said he hadn’t seen financial statements regarding the Pere Marquette’s performance until three or four weeks ago. That’s when Urich said he first had access to them, according to the councilman.

Those numbers were comprehensive from the Pere Marquette’s June 2013 opening, Weaver said. The city and Matthews have a confidentiality agreement regarding public release of the figures. But Weaver suggested municipal officials needed them much earlier.

“I think that our agreements a lot of times aren’t as tight as they need to be, with regard to what we should be getting,” Weaver said.

“It’s still a fantastic hotel, and I have to compliment Mr. Matthews for getting us here. We want to see him engaged in the future. He understands it and he’s been close to it, but the reality is it’s something where I feel the council has been kept in the dark.”

Nick Vlahos can be reached at 686-3285 or nvlahos@pjstar.com. Follow him on Twitter @VlahosNick.